Would an RBS break-up be an opportunity for shareholders?

RBS has seen shares fall 5% today after Chancellor George Osborne revealed a decision on its future is due in weeks, but is it a buying opportunity for investors or the right time to cash in?

RBS was the biggest faller in the FTSE 100 today with shares down 17.2p at 355p by mid-afternoon as investors panicked over the impact of a potential division of the lender into a 'good' and a 'bad' bank. The bad bank idea is not new, having initially been suggested by Treasury Select Committee chairman Andrew Tyrie to help the bank ease problems stemming from European banking competition laws. While the rescue of RBS back in 2008 was needed to prevent a full-blown banking catastrophe, the government's continued support leaves the bank at risk of falling foul of competition rules for ...